Ontario revenues fall forcing the use of reserves

Font size :

With a $12.5 billion deficit Ontario’s government could have done with some good news, but instead the province’s fall economic update showed a $500 million black hole in revenues and slower growth ahead.

In revealing the figures Finance Minister Charles Sousa said that the revenue gap would be $300 million once lower federal government interest rates were factored in, but that Ontario would be forced to dip into reserve funds.

Growth projections have also been revised down to 1.9 per cent in this fiscal year (from the 2.1 previously forecast) and 2.4 per cent each year through 2017.

The government does, however, still expect to balance the books by 2017.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate